Question:

What happens if you use Levered Free Cash Flow instead of Unlevered Free Cash Flow in your DCF?

Answer hidden.

Answer:

Using Levered Free Cash Flow would get us to an Equity Value for the company instead of an Enterprise Value.

That's because Levered Free Cash Flow is only available to equity holders. Debt holders are excluded because they have already been accounted for with the interest payments.

Other

DCF

Walk me through how to get from Revenue to Unlevered Free Cash Flow in your DCF projections

DCF

Would you expect the WACC to be higher for a $1 billion or $100 million market cap company?

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DCF

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DCF

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DCF

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DCF

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DCF

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DCF

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DCF

What happens to WACC as you increase leverage?

DCF

What is beta?

DCF